Additional Employment Rules for 50+ Employees

Congratulations, your company is growing! And, along with this growth comes more power, more employees, and thus more responsibility. It’s certainly a great accomplishment for any company that hits the 50+ employee threshold; however, keep in mind, once you’ve employed 50+ employees you must comply with certain additional employment rules:

  • Affordable Care Act: The Affordable Care Act (ACA), or “Obamacare” requires that certain businesses have to participate in the healthcare system. Below are some requirements attached to the ACA when an employer passes the 50+ employee threshold; please check here for more requirements.
    • Information reporting—Employers must report to the IRS the health coverage they offer their full-time employees.
    • Medical Loss Ratio Rebates— Employers who receive these premium rebates must determine whether the rebates constitute plan assets.  If treated as a plan asset, employers have discretion to determine a reasonable and fair allocation of the rebate.
    • W-2 Reporting—employers must report the aggregate annual cost of employer-provided coverage for each employee on the Form W-2.  The new W-2 reporting requirement is informational only and it does not require taxation on any health plan coverage.
    • Summary of Benefits and Coverage (“SBCs”) —Health insurers for these employees must provide them with clear, consistent and comparable information about their health plan benefits and coverage.
  • Family & Medical Leave: In accordance with the Family Medical Leave Act (“FMLA”), employers with 50 or more employees must provide eligible employees with job-protected unpaid leave for up to 12 weeks in a 12-month period for any of the following reasons:
    • To care for a child’s birth, adoption, or placement with the employee for foster care.
    • To care for an immediate family member (spouse, child or parent), if the family member has a serious health condition.
    • To care for an employee’s own serious health condition that makes them unable to perform their job functions.
    • If the employee’s spouse, child or parent has been notified of an impending call or order to covered active duty in the Armed Forces.
  • Literacy Education Assistance: Employers with 25 or more employees must reasonably accommodate and assist any employee who reveals a literacy problem and requests employer assistance in enrolling in an adult literacy education program, provided that this reasonable accommodation does not impose an undue hardship on the employer. An employer is not required to provide paid time off for an employee to participate in an adult literacy education program.
  • Sexual Harassment Training: Employers with 50 or more employees must provide sexual harassment training for every employee with “supervisory authority.” This 2-hour training must occur every 2 years and must include information and practical guidance regarding federal and state sexual harassment laws, including harassment prevention and correction, and remedies available to victims.

By Stephanie Trejos

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Disclaimer: Although this article may be considered advertising under applicable law and ethical rules, the information in this article is presented for informational purposes only. Nothing herein should be taken as legal advice and this content does not form an attorney-client relationship. If you would like further information, Wilkinson Mazzeo would love to hear from you, so please feel free to reach out with any questions!

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